Any company registered with HMRC as a non-resident VAT trader must submit taxable transactions via periodic filings known as returns. A VAT Return determines how much amount of VAT a company must pay to HM Revenue and Customs (HMRC) or be reimbursed by them. VAT is governed by a number of deadlines, thresholds, rules, and regulations. The following sections provide all information about UK VAT Returns and UK VAT Refunds.

UK VAT Returns are typically filed quarterly. In the scenario of regular repayment traders, the taxpayer may request monthly VAT returns. HMRC may also require a business to submit monthly payments on account. These are advance payments which are deducted from the total quarterly payment when the quarterly VAT return is filed.

UK VAT Return Deadline is typically on the 7th of the 2nd month following the end of the reporting period. Any UK VAT that is owed must be compensated at the same moment. There are different UK VAT Return Deadlines for businesses on the Annual VAT Accounting Scheme. The tax authorities publish these deadlines.

For the Late VAT Return Penalty UK, the government has set up a fresh VAT default surcharge rule that began on January 1, 2023. Late VAT return submissions as well as late VAT payments are subject to separate penalties under this new penalty system. In addition, the new system calculates interest differently for late taxpayers and late HMRC payments. Late VAT returns are penalised under the new system. This new Late VAT Return Penalty UK point system is expected to be implemented across all timely tax payments, with the objective to establish a less punitive system for the accidentally missed deadline. When you reach a certain amount of points, HMRC will fine you £200. Following that, each missed deadline will result in a new penalty fee.

HMRC will reimburse you for the difference if your VAT Return demonstrates that you’re able to reclaim more VAT than you owe. VAT tax refunds UK are typically authorised within 30 days of HMRC obtaining your VAT return. If HMRC contains your bank account information, the refund will be deposited directly into your account. If that is not the case, then you will be receiving a check through your email. Finally, if your VAT Tax Refund UK  is not paid within the routine timeframes, HMRC is required to pay repayment interest, which is combined with the VAT reimbursement.

Therefore, it is very important to know about the VAT Return Dates UK, to avoid the payment of hefty penalties under the new penalty system. If you want help with your payments and penalties for UK VAT Returns making accounting efficient, then the Meru Accounting is here to help you out.

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